Verizon Communications agreed to buy Yahoo’s operating business for approximately $4.8 billion in cash. The deal is subject to approval and is expected to close in Q1 of 2017.
Yahoo’s business will be integrated with AOL, the internet company that Verizon acquired last year for USD 4.4 billion. Combined, AOL and Yahoo will have more than 25 brands in its portfolio, said Verizon in a press release.
The sale does not include Yahoo’s shares in the Chinese e-commerce company Alibaba Group Holdings and its shares in Yahoo Japan. “The sale of our operating business, which effectively separates our Asian asset equity stakes, is an important step in our plan to unlock shareholder value for Yahoo”, said Marissa Mayer, CEO of Yahoo, in a statement. “This transaction also sets up a great opportunity for Yahoo to build further distribution and accelerate our work in mobile, video, native advertising and social”, the executive added.
Verizon is the main telecommunications company in the U.S with close than 23 million fixed lines at the end of Q116. Verizon is also the second leading mobile operator and it operates pay TV services.